1 LSE Certification Process ERCOT August 23, 2006

2 LSE Certification Process Potential Market Participant contacts Retail Client Services Mandatory Market Orientation New LSEs that wish to sign up for Flight testing must complete the following by Flight Deadline –Submit LSE Application –Submit $500 LSE Application Fee –Filed for REP Certification with PUCT –Complete and submit Testing Worksheet –Notify ERCOT of intent to test via once TW has been submitted

3 LSE Certification Process Retail Account Manager is assigned Flight Testing occurs Notified by the Flight Administrator when testing is complete Retail Client Services checks requirements tracking spreadsheet New LSE that have met all requirements –Certification Letter ed to Primary Business Contact –Signed Certification Letter mailed to New LSE –Remaining Steps Letter –Production Digital Certificate (3 Business days from requested date) –TDSPs are notified

4 New LSE that have passed testing, but still have outstanding items that need to be submitted such as: –Standard Form Agreement –Qualified Scheduling Entity (Part D of the LSE Application) –Receipt of the REP Certificate from the Public Utility Commission of Texas –Retail Account Manager will send follow up to the primary business contact to inform of what is outstanding »When requirements are received, Retail Account Manager will notify Lead of Retail Client Services to send 5 necessary notification letters LSE Certification Process

5 Retail Account Manager will send Welcome Letter and Action Items Letter. –Action Items Letter will ask for the number and FasTrak contacts/MarkeTrak Admin. New Market Participant should file the signed certification letter with the PUCT. The PUCT will decide when the 21 day waiting period begins. New Market Participant will need to contact Commercial Operations at ERCOT for connectivity testing. New Market Participant should contact their Retail Account Manager when sending in their first transaction. –Date, time and transaction type. –Retail Account Manager will monitor progress to ensure transaction is processed.

6 QUESTIONS